Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Study the scenario and complete the question ( s ) that follow ( s ) : True North ( Pty ) Ltd trades from rented
Study the scenario and complete the questions that follows: True North Pty Ltd trades from rented premises in a large shopping centre owned by PropCo Limited. PropCo undertook a renovation of the shopping centre, which interrupted True Norths trading operations. PropCo consequently paid True North R as compensation for the loss of business during the renovations. True North has a December yearend and the compensation was paid on December Werner Karr is employed by Weba Car Sales Pty Ltd Weba as a car salesman. Werner is paid a basic salary of R per month and he also earns commission based on the cars he sells. The commission is based on the final annual sales figure, after allowing for any cancelled transactions or bad debts. For the financial ended February Webas accountant calculated the final sales figure on May and Werners commission was then determined at an amount of R Landy Lord rents out two cottages that are on her property. One cottage is rented by Paul Owen and the other is rented by Anne Beak. Both lease agreements provide that the monthly rental is due and payable on the first day of every month. On February Paul paid Landy his rental for March Anne is experiencing cash flow problems, and she only paid her February rental on March Source: Arendse, J Required: Explain whether each of the above transactions would give rise to an amount of gross income as defined in the Income Tax Act No of and if so indicate the year of assessment in which such inclusion would arise: True North Werner Karr Landy Lord Marks will be awarded for the abovementioned technical aspects and general presentation including references to the legislation and case law. INCLUDE REFRENCES
Study the scenario and complete the questions that follows:
True North Pty Ltd trades from rented premises in a large shopping centre owned by PropCo Limited. PropCo undertook a renovation of the shopping centre, which interrupted True Norths trading operations. PropCo consequently paid True North R as compensation for the loss of business during the renovations. True North has a December yearend and the compensation was paid on December
Werner Karr is employed by Weba Car Sales Pty Ltd Weba as a car salesman. Werner is paid a basic salary of R per month and he also earns commission based on the cars he sells. The commission is based on the final annual sales figure, after allowing for any cancelled transactions or bad debts. For the financial ended February Webas accountant calculated the final sales figure on May and Werners commission was then determined at an amount of R
Landy Lord rents out two cottages that are on her property. One cottage is rented by Paul Owen and the other is rented by Anne Beak. Both lease agreements provide that the monthly rental is due and payable on the first day of every month.
On February Paul paid Landy his rental for March
Anne is experiencing cash flow problems, and she only paid her February rental on March
Source: Arendse, J
Required:
Explain whether each of the above transactions would give rise to an amount of gross income as defined in the Income Tax Act No of and if so indicate the year of assessment in which such inclusion would arise:
True North
Werner Karr
Landy Lord Marks will be awarded for the abovementioned technical aspects and general presentation including references to the legislation and case law. INCLUDE REFRENCES
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started